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Conflicted technical setups emerge in the wake of Shiba Inuâs latest price decline, with price targets sitting as high as $0.0001.
Shiba Inu (SHIB) edged further down on Nov. 24 as its appeal among the army of retail traders, who helped it rally by more than 535% to a record high of $0.00008854 earlier this year, declined.
SHIBâs price dropped by nearly 60% after establishing the said all-time high on Oct. 28, signaling that traders have been actively locking their Shiba Inu profits. That has further resulted in a substantial drop in SHIBâs benchmark instrument of SHIB/USDT volumes on Binance, underscoring a weak retail interest.
In doing so, SHIBâs reported market capitalization slipped to $21.30 billion from around $28.31 billion in just five days beginning on Friday.
SHIB/USDT daily price chart. Source: TradingView
Googleâs keyword search data also showed a declining interest in the âShiba Inuâ markets, with its score on a 12-month timeframe dropping down from a perfect 100 to 20, much in line with SHIBâs 60% price correction.
Alex KrĂŒger, an independent market analyst, referred to the dropping Google Trends for the keyword âShiba Inuâ as a sign that the token has been topping out â i.e., the beginning of its bear cycle.
Internet searches for the keyword âShiba Inu.â Source: Google Trends
More sell-off ahead?
The latest bout of selling in the SHIB market pushed its prices below a critical upward sloping support (the velvet trendline), triggering its potential to undergo further declines.
For instance, the levels defined within the scope of the Fibonacci retracement graph, drawn from a swing low of $0.00000614 to a swing high of $0.00008933, provided potential entry and exit points as SHIBâs price trended lower, as shown in the chart below.
SHIB/USDT daily price chart featuring Fibonacci retracement levels. Source: TradingView
It appears SHIBâs latest price had it test the 0.618 Fib line at $0.00003792 as its interim support level. A rebound off the said price floor raised SHIBâs potential to retest the upward sloping trendline as resistance, which coincides with the 0.5 Fib line at $0.00004773.
Conversely, a move below $0.00003792 may risk sending SHIBâs price to the 0.786 Fib line at $0.00002394. Market analyst IncomeSharks also highlighted the area around $0.00002394 as a potential âbuy zoneâ while referring to a weekly SHIB chart.
$SHIB - Think we see weekly supertrend support eventually touch. This is where I would look to get back in if I was to play this. pic.twitter.com/nBmtfB77n6
â IncomeSharks (@IncomeSharks) November 23, 2021
SHIB price bull flag setup
Offsetting the sell-off fears in the SHIB market is the occurrence of a potential bull flag setup.
Related:Â Shiba Inu in danger of âtopping signalâ as SHIB price loses 50% in 3 weeks
In detail, SHIBâs price has been trending lower inside a downward sloping channel since topping out at $0.00008854 on Oct. 28. The channel more or less appears like a bull flag, a bullish continuation indicator that appears as a consolidation phase following a strong move higher, as shown in the chart below.
SHIB/USDT daily price chart featuring bull flag setup. Source: TradingView
Typically, traders place their upside target at a length equal to the height of the previous uptrend (called a flagpole), anticipating that the instrument will break above the flag range with higher volumes. As a result, SHIB has the potential to rally by as high as $0.00005100, its flagpoleâs height.
That puts the Shiba Inu token en route toward $0.00010000.
The views and opinions expressed here are solely those of the author and do not necessarily reflect the views of Cointelegraph.com. Every investment and trading move involves risk, you should conduct your own research when making a decision.
Disclaimer
The views and opinions expressed in this article are solely those of the authors and do not reflect the views of Bitcoin Insider. Every investment and trading move involves risk - this is especially true for cryptocurrencies given their volatility. We strongly advise our readers to conduct their own research when making a decision.